Summary
Duke Energy Progress, LLC (DEP), a subsidiary of Duke Energy Corp. (DUK), has reached a partial settlement with the Public Staff – North Carolina Utilities Commission (NCUC) regarding its general rate case. This settlement primarily addresses the recovery of Deferred Storm Costs associated with Hurricanes Florence, Michael, Dorian, and Winter Storm Diego. Notably, DEP will withdraw its direct request for cost recovery in this rate case and instead pursue a securitization financing order for these costs within 120 days of the NCUC's order on the matter. A recovery rider for these costs will be established, initially set at zero, with provisions for DEP to seek recovery outside of a general rate case if securitization fails. The partial settlement excludes key items such as coal ash recovery, return on equity, capitalization structure, depreciation rates, grid improvement plans, and Excess Deferred Income Tax (EDIT) balances. This means these significant aspects will be subject to further deliberation and potential dispute within the NCUC's proceedings. The stipulation is contingent upon approval from the NCUC, and additional details are available in Exhibit 99.1.
Key Highlights
- 1Duke Energy Progress (DEP) reached a partial settlement with the NCUC Public Staff regarding its rate case.
- 2DEP will remove its request to recover Deferred Storm Costs directly in the current rate case.
- 3DEP intends to file for a securitization financing order for Deferred Storm Costs within 120 days post-NCUC order.
- 4A recovery rider for Deferred Storm Costs will be established at an initial rate of $0.
- 5DEP reserves the right to seek recovery of Deferred Storm Costs outside a general rate case if securitization is unsuccessful.
- 6Key issues like coal ash recovery, ROE, and capitalization structure remain unsettled.
- 7The partial settlement is subject to approval by the North Carolina Utilities Commission (NCUC).